BlackRock Moves Toward a Staked ETH ETF

Plus: 📈 Kraken files confidential IPO paperwork, 🔒 WLFI reallocates hacked wallets, 🏛️ CFTC pick pushes tougher oversight.

Author

Juan Aranovich
November 20, 2025

Hi! In today’s edition:

  • 🔵 BlackRock prepares staked ETH ETF

  • 📄 Kraken secretly files IPO paperwork

  • 🔐 WLFI reallocates funds after wallet compromises

  • 🏛️ CFTC chair nominee vows strong crypto oversight

  • 🎧 DEX in the City breaks down ICOs, Uniswap drama, and prediction markets

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By Tikta

BlackRock Lays Groundwork for Staked ETH ETF

Asset management giant BlackRock has filed a Delaware statutory trust registration for the iShares Staked Ethereum Trust ETF, indicating plans to expand its crypto offerings by enabling staking capabilities.

The registration typically precedes a formal ETF application with the SEC, and follows Nasdaq's filing to allow staking for BlackRock’s existing iShares Ethereum Trust (ETHA).

BlackRock is among several major asset managers seeking to add staking features to their Ethereum ETFs, which would allow the funds to earn yield by locking up ether to validate Ethereum network transactions.

The total amount of ETH staked has been steadily increasing, reaching around 35.7 million ETH locked in the network, worth $108 billion. At present, the amount staked represents around 30% of the asset’s circulating supply.

Unchained On Air: 12pm ET today with Steve Ehrlich

Steve is joined by Chris Giancarlo, former commissioner of the Commodity Futures Trading Commission (CFTC), at 12pm to discuss the recent CFTC commissioner confirmation hearing for Michael Selig. Then, Markus Thielen, CEO of 10x Research, joins for a crypto outlook in light of Nvidia’s Q3 earnings report.

📺️ Watch: YouTube, X, PumpFun, or Twitch

Kraken Files Confidentially for US IPO

Major U.S. crypto exchange Kraken has confidentially submitted a draft registration statement, or an “S1” form, with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO).

The filing is a significant early step towards potentially going public as soon as next year, although the exact timeline will depend on regulatory approvals and market conditions.

Specific details regarding the number of shares to be offered and the price range are yet to be determined.

The filing comes shortly after the firm announced an $800 million funding round, and an additional $200 million strategic investment from Citadel Securities, that valued the company at $20 billion.

WLFI to Reallocate Funds from ‘Small Subset’ of Compromised User Wallets 

The Trump family-backed World Liberty Financial (WLFI) said it froze a number of user wallets impacted by phishing attacks and exposed seed phrases in September.

“This was not a WLFI platform or smart contract issue. Attackers gained access to user wallets through third-party security lapses,” said WLFI in a statement posted to X. 

According to WLFI, users who reported a compromise and re-completed their KYC verification will be reallocated their funds shortly.

WLFI said only a “small subset” of users were impacted, without specifying the number or amount of funds at risk. 

However, Arkham analyst Emmett Gallic highlighted onchain data that shows that WLFI executed an emergency function, burning 166.67 million WLFI tokens worth $22.14 million from a compromised address and reallocating funds to a recovery address.

Prospective CFTC Chair Says It’s ‘Vitally Important to Have a Cop On The Beat’ in Crypto

The prospective Commodity Futures Trading Commission (CFTC) chair, Michael Selig, addressed DeFi regulation and digital asset regulation at his nomination hearing on Wednesday.

In response to a question on regulating crypto, he said it was “vitally important that we have a cop on the beat.”

When quizzed on his approach to decentralized finance, he said the regulator should be “looking to onchain markets and onchain applications and thinking about the features of these applications as well as where there’s an actual intermediary involved.”

Selig, with experience as Chief Counsel of the SEC Crypto Task Force, supports clear, innovation-friendly regulation for digital assets that balances investor protection with the growth of the crypto industry.

The administration tapped Selig to lead the CFTC last month after dropping former pick Brian Quintenz, following a contentious nomination process for the latter driven by opposition from influential MAGA donors Tyler and Cameron Winklevoss.

DEX in the City: Are Prediction Markets Gambling, and Who Should Regulate Them?

DEX in the City unpacks the problems with crypto Twitter dialogue, the return of ICOs and the legal uncertainties around prediction markets.

In the second episode of DEX in the City, hosts Jessi Brooks of Ribbit Capital, Katherine Kirkpatrick Bos of StarkWare and Vy Le of Veda discuss the recent spat between former Securities and Exchange Commission Chief of Staff Amanda Fischer and the cryptocurrency community over changes to Uniswap’s model.

They also delve into the return of Initial Coin Offerings now branded as “public token sales.” At the same time, they dissect the legal uncertainties plaguing prediction markets and discuss the state of mainstream crypto adoption despite recent market volatility.

Listen to the episode on Apple Podcasts, Spotify,Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform

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  • ⚖️ Samourai Wallet co‑founder Bill Hill received a four‑year prison sentence for helping build a Bitcoin mixing tool prosecutors said enabled large‑scale laundering, with the judge reducing his term due to his age and recent autism diagnosis but stressing that he still understood the wrongdoing.

  • 🧑‍🚀 Base co‑creator Jesse Pollak announced he will release his personal $JESSE token on the Base App and warned fans about scammers likely to mimic the launch, a move stirring debate given his earlier viral “content coin” that briefly hit a $10 million valuation before collapsing within minutes.

  • 🕵️‍♂️ Analyst ZachXBT warned that regulators are stretching flimsy “illicit funds” claims—such as senators pointing to just $10,000 out of World Liberty Financial’s $550 million raise—to justify crackdowns that could eventually hit trading platforms like Hyperliquid.

  • 📊 Robinhood outlined a three‑stage rollout toward fully permissionless tokenized stocks, ultimately aiming to let users move these digital shares to outside wallets and use them across crypto apps for things like borrowing and collateral.

  • 📉🧠 Federal Reserve meeting notes showed officials divided over whether to cut rates in December—“many” opposed while “several” were open to it—and highlighted worries that lofty markets, especially those boosted by AI excitement, could tumble sharply if sentiment flips.

  • 📱 An independent researcher discovered hidden code in Coinbase’s app showing the company was testing prediction markets and stock-like crypto products through a partner platform, hinting that these features may debut at its upcoming December 17 update event.

  • 🔍 Security firm Quarkslab completed the first public external audit of Bitcoin Core’s software, funded by independent nonprofit groups, finding no serious flaws across crucial areas like networking and consensus and recommending small refinements instead of major fixes.

  • 🏛️ New Hampshire introduced a first-of-its-kind $100 million municipal bond that lets companies borrow money using bitcoin as collateral at strict ratios, a move state leaders framed as a low‑risk way to attract investment while expanding its newly created crypto‑economic development fund.

  • 🇮🇳 India is preparing to debut ARC, a rupee‑pegged digital token created by Polygon and Anq for early 2026, using a controlled two‑layer system where only businesses can mint new tokens and all transfers must be between pre‑approved addresses on Uniswap’s newest version.

  • 💼 South Korean tech giant Naver is reportedly preparing to approve a full-equity acquisition of Upbit owner Dunamu through its fintech arm next week, paving the way for a joint won‑based stablecoin and a suite of new digital finance services.